Question

Kohler Corporation reports the following components of stockholders' equity at December 31, 2018 Problem 13-2A Cash dividends, treasury stock, and statement of retained earnings C3 P2 P3 Common stock-$10 par value, 100,000 shares authorized, 40,000 shares issued and outstanding. Paid-in capital in excess of par value, common stock .... Retained earnings.. Total stockholders' equity .................. $400,000 60,000 270,000 $730,000 During 2019, the following transactions affected its stockholders' equity accounts. Jan. 2 Purchased 4,000 shares of its own stock at $20 cash per share. Jan. 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. Feb. 28 Paid the dividend declared on January 5. July 6 Sold 1,500 of its treasury shares at $24 cash per share. Aug. 22 Sold 2,500 of its treasury shares at $17 cash per share. Sep. 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. Oct. 28 Paid the dividend declared on September 5. Dec. 31 Closed the $388,000 credit balance (from net income) in the Income Summary account to Re- tained Earnings. Required 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the year ended December 31, 2019, 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2019, Check (2) Ending retained earnings, $504,500

Help with 1, 2 and 3 please

Answer 1

1
Journal Entry in the books of Kohler Corporation
			Amount in $
Date	Particulars	Ref	Debit	Credit
02-Jan	Treasury Stock A/c             Dr.		80000
	To Cash A/c			80000
	(Being own Common Stock purchased)
05-Jan	Retained Earnings A/c      Dr.		72000
	To Dividend Payable A/c			72000
	(Being Dividend declared)
28-Feb	Dividend Payable A/c       Dr.		72000
	To Bank A/c			72000
	(Being Declared dividend paid)
06-Jul	Bank A/c                                Dr.		36000
	To Treasury Stock A/c			30000
	To Paid in Capital- Treasury			6000
	(Being Re-sale of Treasury Stock)
22-Aug	Bank A/c                               Dr.		42500
	Paid in Capital- Treasury A/c   Dr.		6000
	Loss on issue of Shares A/c      Dr.		1500
	To Treasury Stock A/c			50000
	(Being re-sale of Treasury Stock)
05-Sep	Retained Earnings A/c      Dr.		80000
	To Dividend Payable A/c			80000
	(Being Dividend declared)
28-Oct	Dividend Payable A/c       Dr.		80000
	To Bank A/c			80000
	(Being Declared dividend paid)
31-Dec	Income Summary A/c       Dr.		388000
	To Retained Earnings A/c			388000
	(Being Net Income of the year transferred to Retained Earnings A/c)
2	Computation of Statement of Retained Earnings of Kohler Corporation for the year ended 31st Dec, 2019
				in $
	Particulars		Amount	Amount
	Opening			270000
	Less:
	Dividend		72000
	Dividend		80000	-152000
	Loss on issue of Treasury Stock			-1500
	Add:
	Current Year Income		388000	388000
	Closing Balance			504500
3	Stockholder's Equity Section of the Kohler Corporation's Balance Sheet as on 31st Dec, 2019
				in $
	Particulars			Amount
	Common Stock- $10 par value, 100000 shares authorised, 40000 shares issued and outstanding			400000
	Paid in Capital- in excess of par value, common Stock			60000
	Retained Earnings			504500
	Total Shareholder's Equity			964500